[NEWSMP] Industry experts have turned increasingly optimistic about the outlook for the biohealth sector.
Unlike the first quarter, when negative assessments increased sharply, sentiment turned more positive in the second quarter.
According to the Manufacturing Business Survey for Second Quarter 2026 Results and Third Quarter and Annual Outlook, published by the Korea Institute for Industrial Economics & Trade (KIET) on July 19, all Business Survey Index (BSI) indicators for the biohealth manufacturing sector exceeded 90 in the second quarter, reflecting a marked improvement. Looking ahead to the third quarter, most key indicators are expected to rise above the 100 mark.
The BSI is calculated from a survey of 1,500 domestic manufacturing companies. Respondents evaluate business conditions using a seven-point scale ranging from "significantly decrease (deterioration)" to "significant increase (improvement)," with "little or no change" as the midpoint. The average response is then converted into an index ranging from 0 to 200.
With 100 indicating no change from the previous quarter, a reading closer to 200 suggests that more respondents expect conditions to improve quarter on quarter, while a reading closer to zero indicates that more respondents anticipate deterioration.
In the report released for the first quarter, the current condition BSI for the biohealth industry showed predominantly negative sentiment. Business conditions, sales, and domestic shipments all fell to the 70 range, while exports declined to 85. Operation ratio and employment also remained below 100.
Although the second-quarter outlook released at that time showed key indicators—including business conditions, sales, and domestic shipments—holding in the 90 range, they were still lower than the previous quarter's outlook and marked the weakest reading since 2024.
The latest report, however, indicates a marked improvement in sentiment.
For the second quarter, the current condition BSI for business conditions, sales, and domestic shipments rose to 94–95, a substantial improvement from the previous quarter when all three indicators had fallen below 80. Exports and employment also climbed to 99.
In addition, operation ratio rose above the neutral 100 mark to 102, while facility investment improved further to 103.
The outlook for the third quarter is positive across most major indicators, with the exception of ordinary profit and financial situation.
Business conditions, sales and domestic shipments all rose above 100, at 101–103, while exports reached 109. Facility investment, operation ratio and employment also posted triple-digit readings of 102, 103 and 101, respectively.
Ordinary profit and financial situation came in at 96 and 97, respectively, remaining just below the neutral 100 level. Meanwhile, raw material prices and product prices stood at 121 and 104, underscoring persistent cost pressures.
